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Evaluate the Effectiveness of Tools and Techniques

   

Added on  2020-06-06

21 Pages6692 Words130 Views
BUSINESSSTRATEGY

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................21.1 Assess business goals, objectives, vision, mission and core competencies.....................21.2 Factors that are considered in strategic plan.....................................................................31.3 Evaluate the effectiveness of tools and techniques..........................................................4TASK 2............................................................................................................................................52.1 Organisational audit .........................................................................................................52.2 Environmental audit.........................................................................................................62.3 Significance of stakeholders.............................................................................................72.4 Present a new strategy......................................................................................................8TASK 3............................................................................................................................................93.1 Appropriateness of alternative strategies..........................................................................93.2 Develop an appropriate strategy.....................................................................................10TASK 4..........................................................................................................................................104.1 Roles and responsibilities of persons who are charged in strategic implementation.....104.2 Resources requirement in implementation of new strategy...........................................114.3 Contribution of SMART targets.....................................................................................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13

INTRODUCTIONBusiness strategy is a systematic approach which is used to pursue company's goals andobjectives. Every commercial entity formulates an effective business strategy that is based uponcertain aspects. It is all about delivering superior value over competition and achieving highermarket growth. Before, implementing any strategy is essential for managers to set vision andmission which they want to achieve. Adequate business strategies can give directions andguidance to working activities and operations in order to gain higher volume of outputs. Businessstrategies concern with resolving all issues and problems which will affect future performance ofthe firm and its productivity (Acquaah, 2013). Marks and Spencer is the chosen organisation inthis present assignment. It is one of the major British multinational retailer which basically deals in home,clothing and luxury products. Marks and Spencer is public limited company and it trades inLondon stock exchange market. It was established in 1884 by Michael Marks and ThomasSpencer. The firm served its products and services across the world, it has wide range of loyalcustomers. The overall revenue of the company is £123.3 million whereas its operating income is£690.6 million. Furthermore, there are over 85000 employees are currently working with Marksand Spencer. The mission statement of the firm is to supply new and branded products in theareas of food, home, cloths and financial services. For this purpose, it offers products ataffordable prices in order to achieve customers' interest and loyalty for long span of time.Whereas the vision statement of the company is “To be standard” against its competitors so as togain high competitive advantage. In this regard, the firm is focused to implement benchmarkingso as to make effective business practices. Beside this, Marks and Spencer has also begun to sellits good to other brands, i.e. Kellogg's Corn flakes. It has almost 960 stores over the UnitedKingdom in which 620 sells only food products. Marks and Spencer is famous for its qualitativeand luxurious products; it always focuses on market research so as to know customers’ needs anddesires. Furthermore, the present assignment has described mission, vision, goals, objectives andcore competencies of the business organisation; all of them have huge role in planning andimplementation of a strong business strategy. The assignment will be explained that managershave to consider certain factors before developing any plan or policy. Decision makers of Marksand Spencer can choose BCG and SPACE matrix; it will help in analysing all external factors1

which will affect firm's performance. Organisational and environmental audit is conductedthrough SWOT and PESTLE analyse in order to examine all internal and factors of market. Thereport also enlightens the role of stakeholders in strategic planning process of the company. It isnecessary for every business organisation to use an effective and new strategy so as to get highmarket expansion and growth. It will also discuss role of certain people in the process ofstrategic implementation. TASK 11.1 Assess business goals, objectives, vision, mission and core competenciesThere are certain aspects which plays a significant role in development of strategicplanning. It is essential for managers to set certain aims and targets for which the strategy isexecuted.Vision Vision statement is all about where a company want to reach in future. Itserves as the point which directs all activities and functions of the firm. Forexample- the vision statement of Marks and Spencer is to be world's largestretailing company delivering qualitative and branded products to itscustomers. Mission Mission statement seems as purpose through which business can intend itsstakeholders. In other words, it is also known as what a company will beserve to its stakeholders which makes it unique to others (Astrachan, 2010).For example- the prime mission of Marks and Spencer is to fulfil socialresponsibilities in order to gain wide range of customers from target market.Goals Goals are helpful in giving direction to business activities and it also keepemphasises where business wants to end up. It is an aim for which anindividual is directed. For instance – the main goal of Marks and Spencer isto increase its market by 10 to 20% by next year.Objectives It dictates as various steps in order to attain identified goals. For example-the main objective of the referred company is to enhance its sales andprofits in competitive market (Auzair, 2011). So as to cover up high marketshare and growth. CoreCore competencies consists as the abilities and skills of a firm through2

competencieswhich it can achieve its goals and objectives. Marks and Spencer is very oldfirm and it has variety of products. Such things will be helpful for it toachieve high competitive advantages. 1.2 Factors that are considered in strategic planWhile formulating a strategic plan, it is necessary for managers to consider certain factorswhich are assistive in making an effective strategic plan. In addition, to grow and diversify atmarketplace, managers need to anticipate and recognise the changes in environment; this will beaids them to take better business decisions. Changes are uncertain, for this business owners haveto must engage to those activities which are helpful in determining such variations. Belowmentioned certain factors that are involved in strategy formulation: - Organisational cultural – within business entities, organisational cultural is veryimperative factor that is liable for success or failure of business strategy. It involvesattitude, beliefs, values, morales etc. of employees who are included in strategic planningprocess. Positive attitude of managers towards their subordinates facilitates tasks andpractices (Azar, 2011). Therefore, it must that all managers and employees can worktogether so as to achieve goals and objectives of the firm. Management – Various leadership styles and ability of team management should alsoconsider in strategy formulation. There are certain managerial forms which helps intaking effective business decisions. Although, it is not possible that all managers andworkers have same point of view; so that they need to establish coordination andcooperation among all staff members.Economic condition – Economic condition of a country also bear upon customers'purchasing power. Extensions in interest or bank rate, unemployment, poverty etc. coulddecrease consumption on non-essential goods. For example- if people of UK have toproper source of income then, they cannot spend more amount of luxurious products. Sothat Marks and Spencer has to develop such kind of business strategy which can gives itmore profits (Montgomery, 2011). 3

1.3 Evaluate the effectiveness of tools and techniquesIn order to gain high competitive advantage, several business entities are usage effectivetools and techniques. This will be help them to make an active and strong business strategy. Inthis context, Marks and Spencer is used BCG matrix. BCG matrix is accessible in providing a framework for allocation of various resources inthe process of strategic planning (Barberá and et. al., 2012). It allows a comparison betweendifferent products and services at a glance. The model is also accessible in identifying marketshare and profitability. BCG matrix is a product life cycle theory which gives priorities toproducts which are capable to provide high market growth and competitive advantage to a firm.Marks and Spencer is endorsed this matrix so as to ensure long term profits and value creation. Itinvolve two dimension, i.e. market growth and market share. Beside this, BCG matrix has ameaningful approach that fits in all approaches, i.e. generic approach. There are four elements ofBCG matrix, such as- (Source: BCG Matrix or BCG analysis, 2017)4Illustration 1: BCG matrix

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